India calls for local currency trade among BRICS to enhance economic resilience

External Affairs Minister Jaishankar emphasized self-reliance amid global economic challenges.

India on Friday urged Brics nations to create a predictable business environment, build resilient supply chains and link their payment systems to allow trade in local currencies, as Russia proposed a Brics grain exchange to strengthen food security across the bloc.

Brics nations have been working on an efficient payment system among themselves for some time. (REUTERS)

Delivering the keynote address at the Brics Business Forum, external affairs minister S Jaishankar said India’s chairship was focused on resilience, innovation, cooperation and sustainability. “We meet at a time when [the] global political and economic order is under churn. Volatility, uncertainty, and complexity have become defining features of the world around us. We are witnessing the economic consequences of geopolitical conflicts, of pandemics, and of climate-related disruptions,” he said.

Jaishankar called for “greater self-reliance” within Brics to strengthen economic security. “The objective is to strengthen our ability to absorb shocks while remaining connected and competitive,” he said, listing genuine market practices, dependable logistics, a predictable business environment, diversified commercial relationships and transparent trade and investment as priorities. Energy systems capable of coping with disruption, and transition pathways suited to different national circumstances, were also needed, he added, citing digital public infrastructure (DPI), artificial intelligence, fintech and advanced manufacturing as areas of major opportunity.

Addressing roughly 2,000 delegates, commerce and industry minister Piyush Goyal said Brics accounted for almost a quarter of global trade and India was a key pillar of intra-bloc commerce. “We believe trade amongst partners should be deep, resilient with diversified supply chains and ensuring that at no point of time trade becomes an impediment to growth and the well-being of the people of each member state. We should open our markets for each other’s products including for raw materials and critical minerals,” he said.

“Our supply chains will be resilient when they run both ways,” Goyal said, urging members and partner countries to open markets, simplify regulations and speed up clearances. He also called on Brics to open services markets, ease professional mobility and recognise each other’s qualifications, and to back agri-tech startups working on food security.

On payments, Goyal said India’s Unified Payments Interface (UPI) now handled over 250 billion transactions a year — more than half the world’s total by volume — and was accepted in 11 countries. “I would urge the Brics member countries and partner countries to link our payment systems, trade, in each other’s local currencies,” he said.

Russian minister of economic development Maxim Reshetnikov said Russia was increasingly settling trade in local currencies. “Three years ago, dollar and euro totaled 85% of settlements for Russian exports. The figure now stands at about 11%,” he said.

He proposed a Brics grain exchange, arguing that member countries were among the world’s leading producers and consumers of grain but still relied on price benchmarks set in other markets.